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There are multiple issues with my device, do you offer repair bundles?
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How high are drug prices in the United States?
What do pharmaceutical companies cite as the cause for high drug prices?
What do health care and economic researchers cite as the cause of high drug prices?
Inability to negotiate for lower prices. Unlike other wealthy countries, and even some less developed countries, which have strong governmental or quasi-governmental agencies negotiating for better drug prices, no public or private agencies in the U.S. have as much negotiating power. The law prevents the federal government from negotiating better prices for Medicare patients. The private “pharmaceutical benefits managers” often have conflicts of interest and take advantage of secrecy to increase their own profits.
The high costs of marketing. The United States is one of only two nations in the world that allow direct-to-consumer drug advertising to patients. Although some of the marketing to doctors most akin to bribery has been curtailed, drug companies still “donate” plenty of money to medical professional societies and to patient advocacy groups for diseases their drugs treat. These “donations” buy silence about high prices, and their so-called charity hides the high profits they are making off the most vulnerable and ill.
Drug price secrecy. “Lack of transparency” is the technical term for the fact that the public cannot learn how much money really went to research or how much it costs to produce drugs. Secret discounts to some purchasers are another barrier blocking fair and visible prices for everyone.
Market power and political power. Studies have consistently shown that the profit margin for drug companies averages about twice the profit margin of other major industries. This happens because patent protection on newer drugs create a lot of their profits. So drug companies constantly push to extend patent protections by minor tweaks on drugs that make little to no therapeutic difference. This monopoly-based market power leads to political power through their extensive lobbying and campaign contributions.